Harvest Energy Trust Completes $230M Financing

On August 17, 2006 Harvest Energy Trust, one of Canada's largest energy royalty trusts, completed an equity financing, issuing 7,026,500 trust units for gross proceeds of approximately $230 million. The net proceeds will be used to repay outstanding bank indebtedness, including a portion of the indebtedness incurred to fund the acquisition of Birchill Energy Limited, a private western Canadian oil and natural gas producer with current production of approximately 6300 barrels of oil equivalent per day.

The financing was underwritten by a syndicate led by CIBC World Markets Inc. and including TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Tristone Capital Inc., Canaccord Capital Corporation and FirstEnergy Capital Corp.

Harvest was represented by Burnet, Duckworth & Palmer LLP with a team that included Grant Zawalsky, Keith Greenfield and Spencer Coupland (securities) and Jeff Fortin and Heather DiGregorio (tax).

The underwriting syndicate was represented by Macleod Dixon LLP with a team that included Robert Engbloom, Kent Kufeldt, Jamie Gagner and Kirsty Sklar (securities) and Darren Hueppelsheuser (tax).